30-3： A Turning Point at the Audio Exhibition

On May 16, 1998, a Saturday, it was the second day of the Beijing International Audio Exhibition. The exhibition was in full swing, with colorful flags fluttering in the wind and large advertisements everywhere. The number of visitors, both business representatives and customers, had noticeably increased. Entry tickets cost 100 yuan each, and every attendee received a commemorative CD pressed in Japan and a grand exhibition catalog with their ticket. Each floor's entrance featured lively events such as hot CD sales, celebrity autograph sessions, and book signings by audiophile hosts and critics.

Ge Lü Shi Company's four shareholders brought six additional people from the ancient city, clearly dividing the tasks for the exhibition. Ouyang Xue was responsible for liaison with the organizing committee, Ye Xiaoming handled major business negotiations and coordinated sales activities in the exhibition room, Liu Bing and his two friends managed retail sales at the exhibition, Feng Shijie and his two assistants handled wholesale business in Ge Lü Shi's warehouse in the basement of Zhengtian Building, and Xiao Yang, along with two staff members from the Venus Hotel, managed the retail store and on-demand deliveries.

Liu Bing was in high spirits, playing the host as he accompanied two audiophile friends from the ancient city, browsing the exhibition hall and discussing which speakers had the best sound quality and which configurations were the most perfect. Liu Bing's invitation to his friends to Beijing had an element of vanity and show-off. They saw the BMW, the audio store in the capital, and the scene of participating in China's highest-specification audio exhibition. They no longer saw Liu Bing as the guy who sold records from a shop window.

Ye Xiaoming, on the other hand, felt a different kind of mood. He sensed he was caught in a powerful whirlpool, helpless and clueless about where it would take him.

At 9:30 AM, Ye Xiaoming handed over the official announcement, stamped with the Ge Lü Shi Company seal, to Liu Bing, instructing him to post it on the bulletin boards in the first-floor lobby, outside the venue, and at the entrances of the third, fourth, and fifth-floor exhibition halls.

Forty minutes after Ge Lü Shi posted their announcement, Slek Company responded by posting their own: during the exhibition, the prices of a power supply, a preamplifier, and a power amplifier would be reduced by 3%. The announcement, written with a brush on red paper, was still wet with ink when posted, indicating a last-minute decision. These three pieces of equipment happened to be the golden pairing for driving Ge Lü Shi speakers. Slek realized the sale of 500 pairs of Ge Lü Shi speakers would bring them a business worth millions.

The announcements by both companies quickly drew the attention of dealers and manufacturers. Ge Lü Shi's exhibition room buzzed with excitement, while Slek's room became crowded.

Ge Lü Shi's announcement read:

Beijing Ge Lü Shi Audio Co., Ltd.

Announcement on Ge Lü Shi No. 1 Dual-Component Speaker Discount Sale

In light of the convergence of audio dealers and enthusiasts at the Beijing International Audio Exhibition, our company has decided to offer a discounted sale on Ge Lü Shi No. 1 dual-component speakers. The wholesale price is reduced from 7,600 yuan to 3,400 yuan, a 55.26% decrease. The nationwide suggested retail price drops from 11,600 yuan to 3,900 yuan, a 66.37% decrease. Each city is limited to one audio store, with a maximum of 25 pairs per store, for a total of 500 pairs.

This price adjustment applies only to mainland China and excludes Western Europe.

Ge Lü Shi speaker quality guarantee: 1. Ge Lü Shi Company only produces this single model of speakers, with no second design or version. 2. The discounted Ge Lü Shi speakers are identical in quality to those sold in Western Europe. Any differences will result in a punitive compensation of ten times the retail price of 3,900 yuan.

Beijing Ge Lü Shi Audio Co., Ltd.

May 16, 1998

The response was immediate. Dealers and manufacturers flocked to both Ge Lü Shi and Slek's exhibition rooms, driven by curiosity and interest in the sudden price cuts. Ge Lü Shi's booth buzzed with activity, and Slek's booth saw a surge of visitors, making both companies the center of attention at the exhibition.